Tokenized real-world asset deposits on DeFi platforms have tripled to $7.4 billion in a year, even as overall DeFi deposits fell, according to new research from CoinShares and Token Terminal
Tokenized real-world assets (RWAs) are seeing rapid adoption on decentralized finance (DeFi) platforms, with deposits more than tripling over the past year despite a broader decline in DeFi activity, according to a report from CoinShares and Token Terminal. The research, which analyzed on-chain activity from the second quarter of 2025 through the second quarter of 2026, found that RWA deposits reached $7.4 billion, up from $2.3 billion a year earlier. This growth occurred even as total DeFi deposits fell by about 15% over the same period, highlighting a shift in user demand toward assets with direct financial utility.
RWA Growth Outpaces DeFi Decline
The report attributes the surge in RWA deposits to increased use of tokenized funds, stocks, and commodities as collateral for lending and trading. Products such as JTRSY and BlackRock's BUIDL, which represent tokenized Treasury and multi-strategy funds, accounted for the largest share of deposits, followed by private credit and delta-neutral yield strategies. Investors are drawn to these assets because they can generate income while being used as collateral, reducing the opportunity cost of locking up capital. Ethereum remains the dominant network for RWA activity, hosting nearly 70% of all deposits, while Plasma and Solana have also gained traction due to protocol expansions and native lending platforms like Kamino.
Trading and Derivatives Activity
While overall spot trading volumes on decentralized exchanges (DEXs) dropped by roughly 70% year-over-year, RWA spot trading volumes rose by about 220%. Most of this activity has concentrated in tokenized gold products such as XAUT and PAXG, as well as a growing segment of tokenized equities. Ethereum and Solana lead in RWA spot trading, while other networks like Arbitrum, BNB Chain, and Base have yet to see significant adoption in this area. In the derivatives market, RWA perpetual futures have continued to grow even as broader on-chain perpetuals have declined. Platforms like tradeXYZ, built on Hyperliquid, have seen trading volumes increase twentyfold since launch, with activity focused on commodities, equity indexes, and technology stocks. Open interest in RWA perpetuals has also grown, suggesting more committed capital compared to the broader crypto derivatives market.
Yield, Revenue, and Investor Segmentation
Tokenized assets currently offer yields ranging from about 3.2% for Treasury-backed products to 5.5% for private credit and funding rate strategies, according to the report. Hyperliquid has emerged as the top revenue-generating application among lending and trading venues in the dataset, capturing value at both the application and settlement layers. Despite this, RWA-related activity remains a small fraction of overall DeFi revenue, as tokenized asset volumes are still modest compared to crypto-native markets. The report also notes a clear divide in investor profiles: institutional products like BlackRock's BUIDL see average wallet balances in the tens of millions, while tokenized equities attract smaller, retail-sized balances and have experienced the fastest growth in on-chain holder counts over the past year.
Market Context and Future Outlook
CoinShares describes the current trend as "Hybrid Finance," where demand for tokenized assets is driven by their practical financial utility rather than crypto market cycles. The firm expects the next phase of growth to focus on how tokenized assets are used, with further consolidation among leading venues and greater segmentation between institutional and retail products. Product innovation is likely to expand the range of risk and return profiles available to investors. As of Q2 2026, only about $2.2 billion of the global equity market-estimated at over $100 trillion-has been tokenized, suggesting significant room for further growth if regulatory, technical, and market barriers can be addressed.
According to CoinShares and Token Terminal, RWA deposits on DeFi platforms reached $7.4 billion in Q2 2026, up from $2.3 billion in Q2 2025. Over the same period, total DeFi deposits fell by approximately 15%. RWA spot trading volumes increased by 220%, while aggregate spot DEX volumes declined by about 70%. Hyperliquid led all venues in application revenue generation, and RWA perpetual futures open interest grew year-over-year despite a broader decline in crypto-native derivatives.
Tokenization of real-world assets involves representing traditional financial instruments-such as government bonds, funds, or commodities-as blockchain-based tokens. While tokenization can improve settlement speed and enable new forms of collateralization, it does not eliminate legal, custody, or counterparty risks. The regulatory status of tokenized assets remains complex, especially in the United States, where securities laws and custody requirements may apply depending on the asset type and platform structure. For U.S. investors and DeFi users, understanding the underlying rights, redemption conditions, and risk profiles of tokenized assets is essential before participating in these markets.
